The Bureau of Customs (BoC) has introduced a new policy that grants temporary duty relief for foreign vessels used in submarine cable projects. Under Customs Administrative Order No. 02-2026, the agency allows the temporary admission of International Cable-Laying and Repair Vessels (ICLRVs).
As a result, the policy supports faster deployment of critical telecommunications and energy infrastructure.
BoC Submarine Cable Vessel Duty Relief Guidelines
The BoC classifies these vessels as professional equipment. Therefore, they qualify for conditional exemption from import duties and taxes.
However, operators must meet specific requirements. The vessel must be foreign-owned and registered and imported by a non-resident entity. In addition, the vessel must operate under the supervision of the visiting party.
To secure approval, operators must submit key documents. These include a Maritime Industry Authority permit, a service or charter agreement, proof of value, a commercial invoice, and a certificate of registry.
Project Scope and Port Movement
The order also defines rules for projects that span multiple customs jurisdictions. Each project must clearly outline the ports involved, routing plan, scope of work, and project timeline.
Once approved, vessels can move between designated ports without filing new import entries. As a result, operators can avoid additional duties and taxes during project execution.
Materials and Import Requirements
The exemption applies only to the vessel itself. Therefore, any cables, pipes, or materials used in the project must still follow standard import regulations.
Unless exempted by law, these materials remain subject to duties and taxes. Consequently, companies must plan logistics and compliance accordingly.
Industry Impact
This policy aims to streamline submarine cable installation and repair. By reducing administrative barriers, the BoC supports faster project completion and improved infrastructure reliability.
In turn, the decision strengthens the Philippines’ role in regional connectivity and network development.
